Money Management

Looking to give your savings a lift? Read on for ways to go about it. 

A recent SecureSave survey found that 63% of Americans don’t have enough money in the bank to cover an unexpected $500 expense. If you’re in that boat, then it’s imperative that you do your best to try to build up an emergency fund over time. Having money in your savings account could help you avoid debt when unplanned bills arise.

The idea of building an emergency fund may seem daunting. That’s understandable. And it’s also why it’s important to set realistic goals. If you’re not really in the habit of saving money regularly, you’re not going to suddenly manage to sock away $100 or more every week.

But what if you were to aim for $10 a week? That’s far more doable, even on an average salary. Here are a few steps you can take to add $10 to your savings every week.

1. Cut back on store-bought lattes

Store-bought coffee is a treat, and one you deserve — especially if it’s what helps get you charged enough to tackle your workday. But the cost of those lattes can also add up. A grande-sized Pumpkin Spice Latte at Starbucks might run you almost $6. And if you’re stopping in for one multiple times a week, you may be spending more than you think.

A good way to free up $10 a week for savings is to cut back on those lattes. This doesn’t mean give them up — just buy fewer. If you typically buy four every week, eliminate two. That way, you’re still getting a treat, but you’re also slowly but surely adding to your savings.

2. Dump streaming services you don’t really use

Many of us pay for streaming content we think we need, only to realize it’s been weeks since we’ve logged into our accounts. Do a streaming service audit to see what you’re paying for. If you can dump Netflix and Max, for example, you might end up $40 richer monthly. That’s $10 a week into your savings right there.

Keep in mind that if you have a membership to Amazon Prime, you’re getting access to Prime Instant Video at no additional cost. So even if you do tend to use your Netflix and Max subscriptions, it may be reasonable to shed them to conserve the cash and settle for what’s playing on Prime instead.

3. Be more careful at the supermarket

Groceries are an essential expense. But being a touch more careful in the way you shop could make it possible to shave your costs by $10 a week.

For one thing, plan meals based on low-cost ingredients. You may be able to find whole grains like brown rice at a reasonable price and use them as a base for different entrees.

Also, plan meals around sales. If chicken thighs at your local supermarket are $1 off per pound this week, and you normally buy 10 pounds’ worth for your famous chicken stew, there’s your $10 in savings right there.

4. Do more of your shopping at Costco

Some people join Costco but don’t use their memberships all that often. If you’re paying that fee, and you have a Costco nearby, try doing more bulk shopping there for items your household consumes regularly.

Let’s say you buy fruit, milk, and ground beef on a weekly basis from your local grocery store. If you have a larger household, it could make sense to buy those items at Costco because you may be more likely to use them up before they go bad. And you might end up spending $10 less than you would at a regular supermarket.

To be clear, though, only buy items in bulk that are already part of your standard rotation. Taking a chance on bulk items you hardly use could result in you losing money rather than saving it.

Putting money in the bank is not always easy, so it’s important to set reasonable goals. But adding $10 a week to your savings may be more than doable if you employ these tips.

And remember, you don’t necessarily need to employ all of them. If you’re willing to dump some streaming services, you may not have to cut back on lattes. Play around with different options to see which lifestyle change is least disruptive while bringing about the results you’re after.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com and Netflix. The Motley Fool has positions in and recommends Amazon.com, Costco Wholesale, Netflix, and Starbucks. The Motley Fool has a disclosure policy.

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Certain moves are likely to result in a credit score hit. Read on to see why one move in particular is something I don’t worry about. 

My credit score used to be a perfect 850. And while that’s something I used to take pride in, it’s also something I’m not willing to chase.

It’s really hard to maintain perfect credit, because sometimes, a completely innocent and financially sound move will cause your credit score to take a small hit. And as long as you’re able to keep your credit score in good shape, you shouldn’t have too much trouble getting approved for a personal loan or credit card when you want one.

In fact, a big reason I no longer have perfect credit is that I’ve applied for a number of credit cards in recent years. And each time that’s happened, my score has taken a modest hit. But that’s not something that worries me in the slightest. And if you have good credit, it shouldn’t worry you, either.

An unavoidable dip

When you apply for a credit card, the issuing company performs a hard inquiry on your credit report. Credit card companies need to make sure they’re issuing credit to borrowers who have a history of paying back their debts. And that’s understandable.

Meanwhile, a hard inquiry on your credit report will generally result in about a five-point drop in your credit score. Too many credit card applications in short order could raise a red flag on your credit report, since it might seem like you’re suddenly desperate to borrow money. But if you apply for a new credit card once every six months, or more like once a year like I do, then that shouldn’t reflect poorly on you from a borrowing standpoint. And you shouldn’t necessarily let yourself get stressed if your credit score drops by five points or so as a result.

In recent years, my credit score has hovered between an 810 and an 830. That puts me in a very strong position to borrow. So I don’t have to sweat it if a credit card application drags down my score by a handful of points.

Even if your credit score isn’t as high, if it’s decent, then a five-point drop generally won’t impact you. If you’re applying for a mortgage, for example, you’re unlikely to see a substantial difference in the rate you’re offered if your credit score is a 720 versus 725. And your chances of getting approved in the first place aren’t very different between a 720 and 725, either.

Ways to avoid a major credit score hit

It’s perfectly reasonable to apply for a credit card from time to time. And you shouldn’t let the idea of a five-point credit score drop stop you from doing that if it otherwise makes sense.

That said, you should take steps to avoid a major drop in your credit score. Being 30 days late or more on a bill or debt could cause your credit score to plunge, so make a point to pay all bills on time.

Racking up a large amount of credit card debt relative to your total credit limit could also cause similar damage, so aim to keep your credit utilization to 30% of your credit limit or less. This means that if your total spending limit across your credit cards is $10,000, you’ll want to make sure to not let your outstanding balance exceed $3,000.

But otherwise, don’t sweat a modest credit score drop. It’s just one of those things that happens when you apply for a new credit card. And the financial benefits of doing so, like snagging a generous welcome bonus, can more than make up for that minor hit.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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Small business ownership isn’t for everyone. Read on to see why you may not be quite ready for it. 

Starting a small business could end up being a very rewarding experience for you. There’s nothing like the feeling of bringing a great idea to life and turning it into something that provides you and your family with a steady stream of income.

But starting a business isn’t something to dive into casually. It’s important to make sure you’re prepared logistically and financially, and that you’re in the right frame of mind to be successful. With that in mind, here are a few signs that you may not be ready to start a business of your own.

1. You don’t have a lot of savings

LinkedIn says that it takes three to four years on average for a new business to become profitable. And until your business turns a profit, you may not have access to income.

That’s why it’s so important to go into business ownership with a solid level of savings. It may not be feasible to sock away enough money in the bank to cover several years of living costs. But one year’s worth of expenses may be both reasonable and doable. If you’re not at that point, though, then you may want to hold off on starting a business.

2. You’re looking to turn a quick profit

It’s important to have realistic expectations when you’re starting a business. If you’re aiming to turn a profit within a few months, you may want to rethink your plans, since we just learned that it can take a lot longer than that for your company’s bank account balance to grow.

One thing you may want to do before starting a business is set a timeline mapping out your goals. You might tell yourself that you’d like to break even by year two and be enjoying a profit by year three. But if you’re not willing to be patient, then you may want to stick to your current job so you don’t set yourself up for disappointment.

3. You don’t have a business plan

It’s not enough to have a great idea and run with it when you’re starting a business. Rather, you need an actual business plan — an official one you can refer to as you get your venture up and running.

Your business plan should include details such as:

Your strategy for marketing your product or serviceYour estimated expensesYour anticipated challengesYour strengths and weaknesses

It could pay to hire a consultant to help you map out that plan. Yes, you’ll be spending money, but it could help set you on the road to success. But if you’re not willing to invest time, effort, and maybe money into that plan, then you may not be ready to own a business just yet.

4. You don’t have a lot of self-confidence

A big part of being successful as a small business owner is having confidence in yourself. If you’re feeling anxious about your prospects and doubt your ability to do well as a business owner, then starting a company of your own may not be your best move.

Of course, you can’t just snap your fingers and gain confidence overnight. But one thing you can do is spend time talking to business owners and doing research so you gain more knowledge about what you’re getting into. That could help you feel more confident in your ability to pull your business off.

Small business ownership isn’t for everyone. And if these signs apply to you, you may want to hold off. But that doesn’t mean you have to write off the idea of starting a business. Rather, it could just mean that it’s a good idea to wait until you’ve addressed a specific shortcoming, whether it’s a lack of savings, planning, or self-esteem.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Many companies are wrapping up remote work. Read on to see why that might hurt your business. 

There was a time when remote work was a novel idea that few businesses embraced. But in the wake of the COVID-19 pandemic, remote work gained popularity. Not only did many companies adopt a remote work policy in 2020, but many have since maintained that policy to some degree.

However, recent data from Resume Builder shows that 90% of companies expect remote work to come to an end by the close of 2024. And you may be gearing up to bring remote work to an end at your business as well.

Doing so could be a good thing for your business. But be aware of these pitfalls you might encounter.

1. Having to bear the expense of office space

If your employees have been working remotely for the past three and a half years, it may be that you dumped your office space lease and reaped a world of savings as a result. But if you’re going to be ending your remote work policy, you’ll need to provide your staff with a place to work from once again. And that’s a cost your business will have to bear.

Of course, it may be an expense you’re prepared for. And it may be one you covered for many years before the concept of remote work even hit your radar. But be mindful of the spending changes you might have to make once you start having to pay rent again.

Remember, inflation has driven many costs upward. So you might end up spending more than expected on overhead and supplies as well as office space. It’s a good idea to sit down with your accountant and review your costs before signing a lease.

2. Having employees who are less available to you

People who work from home don’t spend hours behind the wheel of a car or stuck on a train. But once you put an end to your remote work policy, your employees are apt to have extended periods of time right before or after the workday when they’re not reachable. That’s something you may have to adjust to — and it could also be a detriment to your business.

Imagine this scenario: You’ve wrapped up a meeting at 5 p.m., after which everyone leaves the office. You’re trying to send out a meeting recap so that you can head home for the night as well.

Suddenly, you realize you’re missing one key detail that Bob in accounting can provide you with. If Bob were home, he’d likely be reachable at 5:15. But if Bob’s stuck in traffic for another hour, he won’t be able to look up the numbers you want until 6:15. The result? You’re stuck working late, too.

3. Losing employees who don’t want to work from an office

Some employees may be growing tired of remote work. But a lot of people are no doubt enjoying the flexibility of being able to do their jobs from home. And it’s workers in that latter camp who you risk losing if you bring everyone back to the office.

While it’s true that companies are increasingly putting an end to remote work policies, some businesses are continuing to allow it. If you insist on in-person work, you might lose out on talented employees for that reason alone.

That said, one compromise may be to allow employees to continue working from home once or twice a week. That flexibility may be enough to get valued employees to stay put rather than move on, leaving you to scramble to find replacements.

It’s easy to see why you may be done with remote work as far as your business is concerned. But do keep these pitfalls in mind as you change that policy.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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It’s not worth landing in debt for a dress you’ll wear once. Read on for ways to spend less on a wedding dress. 

Last year, the average couple getting married spent a whopping $30,000 on their big event, reports The Knot. And the average wedding dress cost $1,900.

However, $1,900 might be a bargain for some brides. Wedding dresses can cost many thousands of dollars. And if you have your heart set on a specific one, you may be willing to stretch your budget to swing it.

But one thing you should keep in mind is that while it’s natural to want a specific dress for your wedding, it’s also the sort of thing you’re really only going to use once. And is it really worth a multi-thousand-dollar credit card balance that hangs over your head for years? Probably not.

The good news, though, is that there are plenty of options for snagging a fabulous wedding dress without having to empty your savings account. Here are a few worth looking at.

1. Buy the floor sample

Bridal stores often have samples of wedding dresses out on display so brides-to-be can look around and see what they like. Usually, you’ll tell a store attendant which floor samples you like, and you’ll then get an opportunity to try them on in your size.

Because floor samples are available for people to try on for weeks or sometimes months at a time, they can end up being subject to some wear and tear. But if you happen to find a floor sample you love in your size, you may be able to negotiate its purchase at a discount. And spending a little money to dry-clean a floor sample could be far less expensive than paying full price for an unworn dress.

2. Ask for a loaner

Have a friend or cousin who’s a similar size to you who recently got married? If their wedding dress is still in good condition following their big day, ask to borrow it for your wedding. With the right accessories and hairstyle, it’s unlikely that your guests will recognize where it came from. And even if they do, who cares?

3. Ask for a hand-me-down

Wedding dress styles have no doubt changed through the years. So you may not be too eager to wear your mom’s wedding dress if she sported it back in 1990. But if you have a parent or other relative with a pretty timeless dress, you could ask to wear it at your wedding. Chances are, whoever you’re asking will be honored.

4. Rent your wedding dress

Wedding dresses have a tendency to take up a lot of space. So you may not actually want one monopolizing your closet for years after your big event. For that reason, plus the potential savings involved, it could make sense to rent your wedding dress rather than buy it.

Brides puts the average cost of renting a wedding dress between $50 and $600. Compare that to the average cost of a wedding dress last year, and you stand to save a lot.

5. Buy your dress during a trunk show

A trunk show involves having a designer send its entire product line to a bridal shop so brides-to-be can get a look at their whole collection. You won’t necessarily be able to walk away with a wedding dress at a trunk show. Rather, you may need to place an order in your size after seeing what’s available.

But Brides says you can typically snag a 10% discount if you buy your wedding dress during a trunk show. If you happen to choose a less expensive dress to begin with, that plus the discount might prevent you from spending a fortune.

6. See if it’s possible to buy your wedding dress wholesale

Wholesale prices tend to be significantly cheaper than retail prices. So you may be able to place a dress order through a wholesaler like Premium Bridal Factory.

However, this strategy may not work for you. For one thing, wholesalers give discounts because they’re typically selling inventory in bulk. And you may not get such a large discount on a single dress purchase. (And if you think you can round up a bunch of brides and place a bulk order together, well, good luck coordinating that effort.)

Also, many wedding dress wholesalers operate online only, so you may not get a chance to see your dress in person before purchasing it. Considering that you’ll be wearing it to one of the most important events of your life, that’s not so great.

Racking up debt in the course of buying your dream wedding dress could leave you regretting that decision after the fact. The good news, however, is that you have plenty of options for scoring a beautiful wedding dress without wrecking your finances in the process.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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